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to assess mining methods, understand
what ground conditions to expect in dif-
ferent lithological units, train a local
workforce, and generate cash flow to offset
some exploration expenses.
All gathered data will add to the robust-
ness of the company's feasibility study,
which will be released in 2019 the com-
pany has said.
Since the start of test mining at Bonanza
Ledge, approximately 80,000 tonnes have
been extracted using long-hole mining
methods on two active levels. Material
from these deposits is processed at the QR
mill, a fully-owned, permitted mill and
tailings facility.
The mining blocks, mined so far,
yielded better grades than expected with
an average grade of 7.05 g/t, compared to
the planned 6.5 g/t and dilution is on track
with the predicted 12%.
The company said the tested devel-
opment methods will have a positive
economic impact for the larger project
at Cow and Island Mountain by proving
the viability of management's vision for
the Cariboo Project and the potential of
growth to becoming a significant gold pro-
ducer in BC.
Meanwhile, significant reductions in
operating cost have been made over the
past few months, effectively reducing the
initial $300 per tonne operating cost to
$190 per tonne in the recent month. By the
end of 2018, the company will have com-
pleted roughly 400,000 metres of drilling
on the property.
Its brownfield exploration team is
currently focused on developing and
delineating a mineable resource within 7
km of principle project area near the town
of Wells.
If and when commercial production
begins, possibly by 2021, Lodder said he
envisages initial production of 150,000
– 200,000 ounces of gold annually from
an operation that might cost between
$300 million and $400 million to develop.
However, these are back of the envelope
numbers. A clearer picture of what lies
ahead should emerge when results of the
feasibility study are released next year.
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MINING
